FedEx Initiates $1B Accelerated Share Repurchase Agreement As Part Of Its Commitment To Enhance Capital Returns To Stockholders
Portfolio Pulse from Happy Mohamed
FedEx Corp. (NYSE:FDX) has initiated a $1 billion accelerated share repurchase (ASR) agreement with Mizuho Markets Americas LLC as part of its ongoing share repurchase program. FedEx will receive an initial delivery of approximately 3.2 million shares on December 28, 2023, and the final settlement will occur no later than February 29, 2024. The total number of shares repurchased will depend on the volume-weighted average price of FedEx's stock, adjusted for a discount.
December 26, 2023 | 2:01 pm
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FedEx Corp. has entered into a $1 billion ASR agreement to repurchase shares, signaling confidence in its financial position and a commitment to returning value to shareholders.
The initiation of a $1 billion ASR agreement by FedEx is a strong signal to the market of the company's commitment to returning capital to shareholders, which is generally viewed positively by investors. The repurchase program can provide support to the stock price in the short term due to the reduced supply of shares and the perception of management's confidence in the company's prospects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100